Health Spending

Accounts

One of the most underused benefits that are available for incorporated business owners and their families

Do I operate an incorporated business?

Do I have medical expenses?

Do I pay income tax?

Ask Yourself

If the answer is yes to these three questions, a Health Spending Account will save you money

The biggest financial mistake people make is not taking advantage of tax deductions that are available to them”.

Why? “They do not know about them.”

David Chilton, author The Wealthy Barber

In its simplest form, a Health spending account allows you to pay medical, dental and vision care expenses for you and your family

with pre-tax dollars.

Maximum 2 employees in all provinces except Ontario, 1 employee in Ontario, and are not available in Quebec.

What is a Health Spending Account

There is a wide range of eligible expenses for a Health Spending Account.

Here are some highlight of those expenses:

All prescription drugs

All dental - includes orthodontics

All optical - includes laser eye surgery

Paramedical - includes chiropractor, massage, physio, orthotics

Premiums - health and dental premiums paid through spousal plan

Other Expenses - MRI, tuition for special needs

Co-payments and deductibles

Eligible Expenses

Choice 1 Out of Pocket:

After Tax Medical Expense

The medical expense is paid for by you, personally, with out of pocket after tax dollars. After tax dollar is the amount remaining afterpersonal income tax is paid. In this example’s tax rate, your company would need to pay you $1,780 (before tax). 43% would be paid inincome tax ($780).

This would leave you with $1,000 (after tax) to cover the cost of your medical expense.

Choice 2 HSA:

Before Tax Medical Expense

On this side, the medical expense is paid through your corporation as a before tax business expense. Effectively, you are able to write off 100% of your medical expense through your corporation. Value is created by keeping the additional 43% tax inside your corporation.

The annual fee in this example is only paid once per year. On your next claim there would be no administration fee, thus increaseing your savings.

The Olympia HSA has an annual subscription fee of $299.00, and is available for one person businesses, either incorporated or self-employed, the annualsubscription fee includes the following three items:

Health spending account

There is no set up fee

There is no administration fee to process claims (cost plus 0%)

No Cancellation fee

Online claims

Sign up in less than 5 minutes

What's Included and Pricing

Travel Insurance

Coverage per trip of up to 90 days

Up to $2,000,000 of coverage

Coverage up to and including age 69

Single and family coverage (for employees, spouses of any age and/or dependent children)